Economics
Biden Presidency Starts With a Giant Bet on Run-It-Hot Economics
- Aides shrug off warnings $1.9 trillion stimulus is too much
- It’s another shift away from regime where inflation fear ruled
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Joe Biden’s administration has dedicated its first few weeks in office to spending more money on pandemic relief -- and shrugged off warnings that the economy may overheat as a result.
If the president sticks to his guns, it could mark another milestone in the great policy rethink that got under way after the 2008 financial crisis.
Biden’s $1.9 trillion aid plan would be the second-largest injection of federal cash in U.S. history. Only last year’s Cares Act was bigger -- but that came at the start of the pandemic, when the deepest recession in decades lay directly ahead.
The next round of fiscal support, by contrast, will flow into an economy that’s already bounced much of the way back.